The Minister said this in Parliament yesterday and emphasized that the IMF loan is to continue development projects in the North and the East.

"He said the interest rate would be below two percent for this loan.

According to minister Sri Lanka is unable to pay high interest rates for commercial loans as it is a middle income country.

"A number of international financial institutions have also failed to provide loans as a result of the global financial crisis, but we will not place any burdens on the people due to this reason," he said.

"Once terrorism is eliminated, the country will march towards success and prosperity," he added.